Social investment

A snapshot of the Venture Philanthropy and Social Investment sector in Europe in 2016

7 November Nov 2016 1037 07 November 2016

According to the Evpa ( European Venture Philanthropy association) survey, the sector is a dynamic and evolving sector focused on providing more effective and measurable support for social purpose organisations and tackling the major issues facing our societies today.

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According to the Evpa ( European Venture Philanthropy association) survey, the sector is a dynamic and evolving sector focused on providing more effective and measurable support for social purpose organisations and tackling the major issues facing our societies today.

For 2015-2016, the sector is reporting growth overall, stabilising budgets, rapidly evolving best practices and a strong increase in co-investment among peers.

These latest trends and key data on this entrepreurial approach to philanthropy can be found in The EVPA Survey 2015/2016. The survey polled social investors and grant makers based in Europe, of which 69% seek a societal return over a financial one, and 31% consider societal and social return equally important.

The survey had 108 responding European Venture Philanthropy Organisations (VPOs). Interesting key data and trends include:

* 72% are structured as not-for-profits (such as foundations, charities or companies with a profitable status).

* Governments, own endowment and trusts are the main sources of VP funding/SI funding, representing, alone, almost half of the total resources made available to VPOs.

* Social enterprises and non-profits without trading revenues are the main target of investment, receiving 37% and 35% of total funding respectively.

* Co-investment is a key component of their investment strategy. 63% of respondents have co-invested in the past and 19% said they are interested in doing so. 51% of those that have co-invested did so with foundations engaged in other forms of philanthropy.

Evpa Report

* The majority adapt the funding they offer to their investee/beneficiary; 59% of respondents always or often do so.

* Grants remain the primary financing instrument in terms of € spend (42%).

* The most commonly targeted social impact themes are economic and social development (receiving 24% of funding), ahead of financial inclusion (19%), education (15%) and environment (14%).

* The main beneficiaires are youth and children, and people in poverty.

* The most common way to strengthen their beneficiaries/investees organisational capacity is through strategic support (85%), assistance on their revenue strategy (77%) and financial management (73%).

* The majority is focused on outcomes. 96% of VPOs surveyed indicated to measure societal performance of their beneficiaries/investees.

We’re really excited to see this rise in co-investment, which, to us, indicates more collaboration, a pooling of resources, expertise and best practices to ultimately see more impact.

Bernard Uyttendaele, CEO at EVPA

The full survey and snapshot overview can be consulted HERE.

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